Morning Summary: Those of you of a certain age will recall a certain Bugs Bunny cartoon with Yosemite Sam as a royal cook. One day the disgruntled king looks at his meal and says, “Take it away. Every day the same thing. Variety! I want something different. Fix me hasenpfeffer right away.” Hilarity ensues once we find out the dish is rabbit stew. Anyway, this fits with Friday’s markets on the idea it would be nice to see some variety as we close out the week, with the end result being every day the same thing so far. A quick check of the markets doesn’t offer much hope for hasenpfeffer on the menu today with the US dollar index back in the red, US stock index futures a pale green, energies and metals both showing gains early, and the grain and oilseed complex quietly mixed. Cotton is lower on a round of light noncommercial selling, with the Dec issue showing almost 2,100 contracts changing hands while March registered only 430 contracts traded. Look for the livestock sector to be volatile again as we close out the week with the cash cattle market reportedly holding firm.

Corn: Since the theme of the morning has to do with royalty, I’m going to lead with King Corn. The market did what it likes to do, move a couple cents higher overnight with contracts sitting near session highs early in the morning. Don’t get overly excited about that statement, though, given trading ranges were only 4 cents. Trade volume was moderate at best with 26,000 contracts of the Dec issue changing hands and 17,000 contracts of March traded. The one difference between what I see early Friday morning and what I have seen countless other mornings is the Dec issue losing fractionally to March. I’m not going to read much into this yet, regarding commercial selling, but it is something I will monitor as the day unfolds. As usual, national average basis firmed Thursday with the cmdty National Corn Basis Index calculated at 25.4 cents under Dec futures, another strong gain from Wednesday’s calculation of 26.3 cents under. This has been an incredible week for basis, due in part to winter-like weather across the US Plains and Midwest slowing harvest progress. Strongest demand continues to come from feedyards, with some areas of the US Plains facing corn-deficit situations. USDA will release its October 1 Cattle on Feed report, including September placements and marketings, Friday afternoon.

Soybeans: Sir Soybean played opossum overnight, slipping as much as 8 cents lower before climbing back into the green through early Friday. Yes, Thursday’s close was bearish but as I talked about at the time, commeical traders were still buying. This led to stronger national average basis with the cmdty National Soybean Basis Index calculated at 52.1 cents under November futures, as compared to the previous day’s calculation of 53.1 cents under. Is the market high priced? Yes. Is it overbought? Yes? Does global demand care at this point? No. We continue to see solid sales almost every day, and with Thursday’s round of commercial interest it would not be surprising to see USDA make another announcement Friday morning. The value of the US dollar is largely irrelevant at this point as the world just needs soybeans. Traders will keep an eye on weekend weather forecasts for Brazil, though even if wet I don’t think it will change the tone of the futures market all that much. Soybean meal continues to scream higher with the Dec issue gaining as much as $3.50 overnight. Like soybeans, the meal forward curve is showing a strong inverse meaning tight supplies in the face of continued strong demand.

Wheat: Thoughts of bearish technical signals on weekly charts that were dancing in my head Thursday afternoon have been washed away as of early Friday morning, with wheat contracts again showing solid overnight gains. Winter markets, the most vulnerable to potential bearish technical turns, led the way higher with December contracts for both Chicago (SRW) and Kansas City (HRW) up more than 5 cents. Dec Minneapolis (HRS) trailed ever so slightly, gaining 4.75 cents as of this writing. The bottom line hasn’t changed much for wheat this week with the US dollar failing to build bullish momentum and weather concerns scattered around the world. While the wheat complex could still close the day in the red, heck it could finish the overnight session below unchanged, as I said to begin with the threat of a bearish turn on weekly charts seems to have subsided for now.